‘Maximum’ council house rent rise down to spiralling costs

By Elgan Hearn, Local Democracy Reporter

Sky-high costs in the construction industry have seen Liberal Democrat councillors justify an inflation-busting 4.3% rise in Powys council rents.

At a meeting of Powys County Council’s Liberal Democrat and Labour Cabinet on Tuesday, members discussed a proposal to put up rents next year for council houses, garages and gypsy/traveller pitches by 4.3%, the maximum allowed by the Welsh Government.

Housing portfolio holder and Deputy Council Leader, Cllr Matthew Dorrance (Labour – Brecon West) had declared an interest and left the meeting so Council Leader Cllr Jake Berriman (Liberal Democrat – Llandrindod North) presented the report in his absence.

Ahead of the proposal going in front of senior councillors, the Tenants Scrutiny Panel (TSP) had said that a 4.3% price hike is in danger of pushing people into poverty and advocated for a lesser rent rise of 2.7%.

Cllr Berriman believed it was “important” to set the context for rent rises and said that this year’s rent of £111.16 rent was below the UK average of £117.13 and a Wales local authority average of £115.

Cllr Berriman said: “This means Powys provides most affordable social housing in the country.”

Cabinet Member for Adult Social Care Cllr Pete Roberts (Liberal Democrat – Llandrindod North), said: “One of the criticisms we might face is that this is an above inflation increase.

“We need to reflect that the bulk of the work in the HRA is building maintenance and development and costs within that sector have increased.

“Are we comfortable that this level of increase will allow us to do the improvement work that is going to become more pressing to ensure our residents have the best homes we can deliver?”

Cllr Berriman said: “HRA is a closed account and distinct from the council’s wider budget and has to wash its own face financially.

“We do get grants to build and maintain homes and ensure they are as energy efficient as they can be, but they are harder to come by.

“Inflation in the construction sector has been anything up to 20%.”

Chief Office for Place, Matt Perry, said: “It is critical that it’s increased. I know it’s not a level that the TSP would have liked, but it does mean we can invest in existing and new homes.

“It’s important to emphasise we are developing new homes in Powys and this allows us to respond to increased housing need.”

Cabinet voted to approve the rent hike.

From April 6 the rents will be:

·      The average council house rent to go up from £111.16 to £115.94.

·      The cost of occupying a gypsy/traveller plot will also go up from £125.39 to £130.78 a week.

·      Garage rents are also set to go up from £15.05 to £15.70 a week. This sees the annual cost go up from £191.32 this year to £199.95 for 2026/2027.